publive-image

Companies, organizations and data brokers collect vast amounts of personal data, from contact details and financial information to demographics and geolocation. This data is valuable for many different reasons, such as targeted marketing. However, data collection comes with risks for the individual. Here are four reasons to opt out of data collection.

1. Your data can be used without your informed consent

Under data privacy legislation, such as the EU’sGeneral Data Protection Regulation, organizations must seek consent before they process personal information. This gives individuals some control over how their data is used and gives them the ability to later withdraw their consent. However, if your data falls into the hands of data brokers, it can be sold on to entities which can use it for purposes for which you have not given consent. Opting out of data collection can limit the risk.

2. Your data can be used by scammers

Personal data collected and sold on by brokers can be used for legitimate processes. However, it can also be used to carry out all kinds of scams. These might include “romance” scams, where the fraudster uses personal details about the target to strike up a fake relationship for the purposes of getting money. Unfortunately, one of the big dangers of sharing data online is that individuals cannot control which entities will get hold of that information. Opting out or getting your data removed from data brokers is another way to lower these risks.

3. Your data can impact your eligibility for financial products

There are data brokers operating in the financial services sector. Examples include Experian and Equifax. These brokers build up vast databases of information related to personal finance. Banks can potentially use this information to decide eligibility for loans and other products. Likewise, there are health information data brokers who sell your information to the healthcare industry. As well as compromising your privacy, if you require health insurance, this data can affect your premium.

4. You might be at increased risk of identity theft

With so much personal data shared online and sold by data brokers to unknown entities, there is an increased risk of identity theft. In 2021, the Federal Trade Commission received nearly 1.5 millionreports of identity theft in the US, with people claiming their data was misused to apply for credit cards, loans and government benefits, among other unauthorized uses. Data brokers collect information from various sources including social media sites, where people are more likely to let down their guard and share personal information, leaving them vulnerable to identity thieves.

Opting out of data collection and removing your information

Fortunately, there are steps you can take to limit what information organizations collect and what they do with that information. For example, it is good practice to check and update the privacy settings on Google, social media sites, and smartphones. When it comes to data brokers, many have specificopt-out processes that allow users to get their personal information removed. While this can be time intensive, there are data removal services that contact multiple data brokers and ensure that removed data stays deleted.